Crypto Casino
Torrent Gear
Operator License Selection Error TOP-5
Getting a license is not a tick in the basement of the site, but a strategic choice that affects access to payments, markets, game providers, marketing and P & L. Below are five mistakes that most often "sink" projects, and what to do instead.
1) License does not match target markets (geo misfit)
How it manifests itself
The license does not give the right to target key countries or prohibits local marketing/payment acceptance.
They expected a "universal pass," but received restrictions on domains, applications, advertising, affiliates.
Game providers and PSPs refuse because the right country is "red/gray."
What leads to
Blocking domains/applications, inaccessibility of cards/banks, regulatory sanctions, empty traffic.
How to
Map markets → whitelist licenses (which geo are actually allowed).
Check modes: local content certification, whitelisting domains, advertising requirements.
Lay a hybrid: "core" (main license) + local permissions/' .country '-domains when growing.
Mini checklist
- Can we legally accept players from target countries?
- Ads/apps allowed? Any creative limitations?
- Do game providers/PSPs support these geo under this license?
2) Confusion between B2C/B2B and product coverage
How it manifests itself
They take a B2B/aggregator license and think that you can work with players.
The license does not contain covers for the necessary verticals: live-casino, jackpots, virtual machines, bet-builder, crash games.
It is mistakenly assumed that "the operator can host RNG himself" - the jurisdiction and the provider have different requirements.
What leads to
A ban on some products, stopping releases, forced "alterations" of infrastructure.
How to
Strictly distinguish B2C (operator) vs B2B (content/platform).
For each product, mark: do I need additional certificates, hosting zone, studio audit/live.
Receive confirmation letters from key content providers about availability under the selected license.
Mini checklist
- Is the license type exactly B2C?
- Are all claimed verticals covered?
- Are there coordination with 3-5 top studios by jurisdiction?
3) Underestimation of compliance, timing and OPEX
How it manifests itself
They budget only duties and "forget" about: key persons, local substance, audit, safeguarding/escrow, RG/affordability, SoF/SoW, reporting, pen tests.
They expect a "license in 60 days," and the process lasts 4-9 months.
What leads to
Cash gap, disrupted go-live, fines, payment freeze due to weak KYC/AML.
How to
Build a complete map of requirements: capital/guarantees, local directors, policies and procedures, information security controls, reporting cycles.
Lay down run-rate OPEX for 12-18 months: audit, RG tools, compliance staff, SOC/penetration tests, software licenses.
Plan a staged launch (soft-launch with limited geo/methods).
Mini checklist
- Are there officers/key persons and their reserves?
- Signed policies (KYC/AML/RG, incident response, safeguarding)?
- Contracts with auditors/ADR/pen-test already agreed?
4) Ignoring PSP/banks and tax architecture
How it manifests itself
"There is a license - payments will appear on their own." In fact, banks/card schemes refuse or cut limits.
The tax model is not calculated: GGR taxes, VAT on services, deductions, FX, substance rules.
What leads to
Low deposit conversion, manual conclusions, unexpected tax charges, disruption of the unit economy.
How to
First, assessment letters from 2-3 acquirers/PSP: limits, countries, risk profile, onboarding terms.
Work safeguarding/escrow and custodians (banks/EMI/crypto-custodian).
Build a tax scheme: where GGR arises, where VAT is paid, how PE/substance is considered, how to divide the income in the group.
Mini checklist
- Confirmed offers from PSP/banks for the necessary geo and methods?
- Are the described safeguarding/escrow processes and accounts open?
- Tax Memo: Rates, Base, Reporting Deadlines, PE Risk?
5) No roadmap to scale and exit
How it manifests itself
The license does not support multiple domains/brands/skins.
No migration path: white label → own license/change of jurisdiction.
Data/RNG hosting/content is linked so that the transfer takes months.
What leads to
Growth ceiling, dependence on one provider, painful migrations, "frozen" data.
How to
At the start, approve the roadmap: additional geo, new products, multi-brand, mobile applications.
Fix the right to migrate in contracts: data export, domain transfer, content re-certification.
Build a modular architecture (payments/content hubs) and maintain a registry of versions/certificates.
Mini checklist
- Does the license/provider support multi-domains and growth?
- Is there a "graduation" plan with a white label for your own license?
- Described the data transfer process and balance sheets (and dates)?
Selection matrix (simplified)
1. Where are we selling now/in 12-24 months? → narrow the list of jurisdictions.
2. What verticals are critical? → check the coverage of the license and studios.
3. Requirements for PSP and methods? → get preliminary offers.
4. SarEx/NUT/terms? → to compare licenses for TCO, time-to-market.
5. Growth/exit plan? → check multi-brand, migrations, data export.
Questions for regulator/provider/consultant
Which geo are allowed/forbidden? How has the list changed over the past 12 months?
Do I need local offices/directors/substance?
What is the situation with safeguarding/escrow (formats, banks, reporting)?
How quickly do PSPs connect to our risk and geo profile?
What verticals require separate certification (live, jackpots, RNG hosting)?
How does ADR work and the timing of complaints?
What is the change approval SLA (new games, domains, apps)?
Red flags
"License for everything at once" without a list of restrictions and references to norms.
No confirmation from PSP/content providers "in writing."
Unclear wording about safeguarding/escrow, no bank/EMI names.
Do not provide policy templates (KYC/AML/RG) and audit plan.
"A 30-day license is guaranteed" is almost always marketing.
The right choice of license is to agree on the strategy of markets, products, payments, taxes and compliance. Five errors above are more expensive than any duty. Think from the opposite: where and how you will sell, what to pay, what games to give and how to grow - and already select jurisdiction, provider and roadmap for this. Then the license will become the foundation of the business, not a brake.